ROVI Up 5%: Plans Sale of Entertainment Store, Raises Profit Outlook

By Tiernan Ray

Shares of interactive television program guide developer Rovi (ROVI) are up 82 cents, over 5%, at $16.67, after the company this evening announced it will pursue a sale of its “Rovi Entertainment Store” business in order to focus on “core enabling technologies and services.”

The company has retained GCA Savvian Advisors LLC to pursue the sale, it said.

Rovi also said it adjusted its outlook for the fiscal year ended last month to a range of $645 million to $650 million, with non-GAAP profit per share of $2.05 and $2.10 to reflect the discontinued operations of the Entertainment Store.

That is in contrast to the forecast offered back on November 1st for $660 million to $670 million in revenue and $1.80 to $1.90. At the same time, tonight’s forecast is a slight change from what Rovi said the forecast would have been had it taken into account the discontinued operation back in November. That forecast at the time would have been $645 million to $655 million, and profit per share of $2 to $2.10, meaning tonight’s forecast is slightly lower on revenue but slightly higher on profit.

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